asked the Chancellor of the Exchequer what is the tax treatment where a company pays subsidies on employees' meals; and to what extent such payments are allowed for tax purposes against profits by the company.

Subsidised meals are not taxable under the general income tax law. They are, however, taxable under the special rules for directors and higher-paid employees, unless the meals are provided on the business premises and are on a reasonable scale and luncheon facilities are also provided for employees generally. The value of meal vouchers provided by employers in excess of 15p a day is also taxable. Such expenditure would normally be allowable, under the general expenses rule, as a deduction in computing the profits of the company for tax purposes.